Euro III standards to boost investments in China's refining sector

Stricter standards on fuel emissions will mean huge investments in China’s refining industry. China adopted its so-called National III auto emissions standard, a version of the Euro III rules, from July 1, with the deadline to phase out Euro II standards by the end of 2009. The upgrades to fuel production facilities will cost Chinese refiners billions of dollars. “The timetable is already fixed and was announced two years ago, so domestic refineries don’t have too much room for maneuver,” said Yan Kefeng, an analyst with Cambridge Energy Research Association. “All our products will meet the standard before the government-set deadline,” said Sinopec Spokesman Huang Wensheng. Currently, only a handful of large cities such as Beijing, Shanghai, Guangzhou and Shenzhen have sufficient supplies of the cleaner fuel. The demand for cleaner fuel is rising, especially with the roll-out of new car models that meet Euro III standards. (August 22, 2007)